Interesting article about Oil

wanghong

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5 b" b- c, Q, @) k9 E- uBelow is an Interesting article I found, which says that.....Do not
+ l1 B$ {+ o$ G3 C+ [expect much from Crude Oil producers and future is not with the
3 {8 D) d* y+ ?8 xcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
0 d, ^3 h& J* s; `0 e* Ccrude prices improves. This implies also to good names such as Shell,
( W! X$ ]+ I- E9 D  kEXXON, BG, BP, Cheveron ....xyz.. oils
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& Z! _) ^$ O: X1 O) \3 U5 URecently OPEC reduced crude oil production twice over just a few
! ~8 J: p3 h2 n, w$ Amonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.

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/ s$ F) P# _3 j; ]: K& _+ z: `There are several reasons the price of oil is decreasing in the face
0 l# l, f9 d5 ?7 ]- B$ ]3 hof so much news. These reasons are:
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! m7 j2 M- r+ w" m* [, _1. New oil has been found in Canada, Montana, North & South Dakota and
- E& `9 s. U% M) N7 y% ]in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
6 n$ m4 o7 m0 Q) }$ t% \This is the largest find in North America.
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; w1 l& P/ J$ m# N& q3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


; f* S1 M4 a* o, O4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
, x. I( y! P5 W. F/ T/ |potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
; W! p" @( A, W( kare now selling their used oil to bio-diesel producers. Every pork,
/ p) s% F, H. \; l: w2 rcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
/ c3 w6 \* C. P( @0 F3 Sconstruction around the world at this time. Several hundred more are
" E! V- H" U. c( Sexpected to be built in the future. Much of the energy they produce
' u3 ^: v& f0 ~1 L5 d1 bwill replace oil.
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6 B, A8 y$ @  P7 ?7. Every company in any form of transportaion business is replacing
& j! n/ y: Z/ K7 zolder equipment such as trucks, airplanes, train engines, ships, etc.
; Z/ c' q8 V% c2 X3 O0 z- `0 f' C- m/ Awith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.

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$ [$ i6 B, V# \+ e2 X, i/ ?Airlines are flying airplanes with bio-fuel. They are finding the bio-
# w1 [3 O4 C: |' V# H4 k) lfuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
0 v2 O8 G  z* g  V4 tproduced as a byproduct is sold to oil companies for injection into
, u% g. T* `1 y$ h4 Poil wells.
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9 R1 Q; B% e9 h7 ^2 _% x, B& n10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
0 B9 u8 S2 Q8 H3 q0 o$ g" vprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.

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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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8 D- r6 E6 W' W, Y1 gThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
) M& m5 w$ d6 F3 |4 q5 ^2009 ... FYI-Only